Travel Insurance excludes Covid 19

Nov 11, 2009
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I read that travel insurers are likely to exclude Covid 19 from cover even when restrictions are lifted. And that this may run for at least 2 years. The consequences of this is that after 31 December 2020 when U.K. Brexit transition ends the EH1C cover will no longer be valid the overseas travel insurance may not include cover for travellers. This would have a significant bearing on people’s plans for travel both in the EU or elsewhere.
 
Mar 14, 2005
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Perhaps Raywood might have a better insight into this, but unless legislation enforces a change in contracts with immediate effect, an insurer cannot change the T&C's of a policy to limit their liability that's already been enacted.

Such a change (without legislation) can only be introduced if the T&C's allow within period changes, or when the policy is up for renewal.
 
Nov 11, 2009
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Perhaps Raywood might have a better insight into this, but unless legislation enforces a change in contracts with immediate effect, an insurer cannot change the T&C's of a policy to limit their liability that's already been enacted.

Such a change (without legislation) can only be introduced if the T&C's allow within period changes, or when the policy is up for renewal.
Prof
As of now few if any travel insurers will even offer insurance. Any that do offer it are likely to exclude Covid 19 or make the premiums so high as to be totally unattractive.
My post does not relate to existing policies it relates to policies that will be issued once travel recommences. It was only a web blog that I read so it’s not necessarily going to move in that direction. But given that as you have said in an earlier post there may be sucessive secondary or tertiary peaks In infection it is something insurers may not wish to accept the risk.
 
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May 7, 2012
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Current policies that do not have the exclusion will still cover you, but new ones may not. Insurers have to take a view as to the risk and if they can quote a premium for this. Essentially the premium required would be so high it would be too expensive for potential purchasers. Two years is probably a figure put out more as a possibility, but most companies will keep this under review and the time frame could go either way.
Some other way round the problem may be offered as if the position remains the same travel abroad may be badly affected.
The EH1C cover is not something I can answer, but the idea that we would not benefit from this next year was based on us negotiating a settlement with the EU. That now looks impossible, so the cover may be extended but we can only wait and see.
 
Nov 11, 2009
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Thank Ray. I’ve been looking at a policy we had issued in 2017 just for a single trip. The T&Cs allow the insurer to cancel without notice. ( (and the insured too). So even existing policies could be negated providing the insurer notifies the insured. I don’t know whether this was a universal T&C.
 
Mar 14, 2005
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I have just got back from Spain. While there i had a majr car problem and will be making a claim against labour charges under my Red Pennant policy. This should be moderately straightforward.
However, we also had to change return crossing from Brittany ferries to Eurotunnel after BF cancelled all sailings. This involved increasing fares and costs in the order of £150 which I feel should als o be covered by section 2 of the RP policy. However staff at CAMC advised me that underwriters were not considering such claims, citing force majure/act of god clauses. To date I have been unable to obtain the form to even make a claim under the non motoring sections of the policy - that in the booklet clearly states Motoring Claims only.

I would be very interested to hear of the experiences of others in this respect. Even if all my claims are met it will in no way match the premiums I have paid as an over 80, but I am going to try as a matter of principle.
 
Mar 24, 2014
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I have just got back from Spain. While there i had a majr car problem and will be making a claim against labour charges under my Red Pennant policy. This should be moderately straightforward.
However, we also had to change return crossing from Brittany ferries to Eurotunnel after BF cancelled all sailings. This involved increasing fares and costs in the order of £150 which I feel should als o be covered by section 2 of the RP policy. However staff at CAMC advised me that underwriters were not considering such claims, citing force majure/act of god clauses. To date I have been unable to obtain the form to even make a claim under the non motoring sections of the policy - that in the booklet clearly states Motoring Claims only.

I would be very interested to hear of the experiences of others in this respect. Even if all my claims are met it will in no way match the premiums I have paid as an over 80, but I am going to try as a matter of principle.
I am not sure what these "force majure/act of god clauses" are. If an insurer wishes to exclude something, they have to make it clear and unambiguous in the policy wording. If there is any abiguity, it should be read in the interest of the policyholder. If you do not have any joy with the claims handlers, make sure you make a formal complaint to the insurer then, if you are still unhappy you can escalate to the Financial Services Ombudsman.
 
Mar 14, 2005
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Hello Niall,

I don't think anyone can honestly deny the impact Covid-19 has wreaked on the world. It is truly a world wide event, and it seems very unlikely that its spread and impact could have been prevented.

Whilst there are some conspiracy theories that suggest the Covid-19 outbreak was a man made virus that escaped or was deliberately deployed, there is as yet no hard evidence to support such contentions.

No single person, organisation** or country is likely to be identified as being guilty of creating or failing to control the virus, which points to the likelihood of it being classed as an "Act of God."

** Despite President Trump blaming the UN's WHO

The Act of God or Force Majeure, clauses are difficult becasue there is no definitive list of such events, There will always be room for discussion about the definition, and of course its likely the insurance companies definitions will be biased towards reducing payouts, and policy holders about increasing payouts.

I suspect in due course we will see several legal challenges to insurers if they invoke AoG or FM clauses.
 
Mar 14, 2005
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Here is Shearman and Sterling’s take on Force Majure in English Law. It relates to contracts but an insurance policy is a contract.

https://www.shearman.com/perspectives/2020/03/covid-19--force-majeure-event
That made interesting reading. Assuming the interpretation is correct, then the government's social restrictions, and in particular the "no unessesary journeys" advice which has subsequently been made actionable by fines, would certainly be a legitimate reason for breaking a reservation contract.

When it comes to insurance, it will depend on the risks the insurance was covering, and whether the policy wording was specific enough to exclude the pandemic or its consequences, such as changes government advice or regulations. I still foresee a number of civil actions testing the insurer's get out clauses.
 
Mar 24, 2014
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Thanks for the erudite comments. I wrote with some knowledge of drafting insurance contracts, and my point was made specifically with regard to what insurers are, and are not, allowed to do in personal, rather than commercial insurance contracts. I do know, from reading the insurance press, that there is already legal action being taken against at least one insurer whose advertising previously emphasised the high proportion of claims they paid. As I said, if there is any ambiguity it has to be read agains the drafter of the contract (contra proferentum) so insurers do have to be very specific in how they word their exclusions.
 
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May 7, 2012
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I have had a look at the policy and there is no specific exclusion for Act of God and I do not believe the Ombudsman would uphold what is clearly otherwise covered. I think you should write an official letter of complaint using the address given in the policy. You should state that you are informed they will not accept the claim, but you do not accept a repudiation on that basis and requiring them to consider the complaint within their normal procedure and time scale. Insurers are required to deal fairly with their customers and this does not seem fair.
If they will not accept this, you can go to the Ombudsman and hopefully he will find in your favour, but whatever it will cost you nothing.
 
May 7, 2012
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It does seem that at least one firm has said that this is "Act of God" and is excluded. I doubt that this would cover the insurer, and if you get this reaction I would take it as far as the Ombudsman. Firms may find they cannot use the Ombudsman though, so may have to resort to law.
 
Mar 14, 2005
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Many thanks for the informative replies. You have saved me much research time. I'm afraid though that with my restricted sight now the amount of effort relative to the possible amount to be recovered equation is likely to come down on the side of just forget it and have another glass of wine. I am really too old for this crusade but wish it were not so - someone need to do it.
On a related issue I am encouraged that Admiral Insurance have today announced a refund or one month premium since many insured have not been able to use their cars. LV and others please copy.
 
Nov 11, 2009
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Many thanks for the informative replies. You have saved me much research time. I'm afraid though that with my restricted sight now the amount of effort relative to the possible amount to be recovered equation is likely to come down on the side of just forget it and have another glass of wine. I am really too old for this crusade but wish it were not so - someone need to do it.
On a related issue I am encouraged that Admiral Insurance have today announced a refund or one month premium since many insured have not been able to use their cars. LV and others please copy.
I think that insurers are acting like travel companies as I have read two accounts where someone(s) has/have had June holiday cruise(s) cancelled. They were offered a rebooking, another holiday, or a credit note for a future cruise. This is with Cunard. What they have been refused is a refund as Cunard are following ABTA advice not to offer refunds, yet legally refund should be an option. So much for ABTA looking after the holidaymakers interests. In France the government have stated that no refunds need to be offered for 18 months hence.
 
May 7, 2012
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I can understand the travel firms problem. Quite simply they are being asked to pay large sums of money when they have absolutely nothing coming in and still have expenses that need to be paid. Travel agents will have passed on most deposits to the firms you book with and will be in an even worse position as they are being asked to refund money they no longer have. I cab see a lot of them going out of business.
The law says they must refund you within 14 days if they cancel, but if they do not have it then how do they do it. At the same time people are due the money so you end up with a no win situation. If you do not get the money you can use the small court system, but even that is of no use if the company has nothing to pay you with. If there is ABTA or ATOL cover you should be safe but there is some doubts over the vouchers being offered and unless they run for a Year at least then they look dicey.
There is no right answer to this one I am afraid, and people have to make up their own mind on whatever information they can get and their financial situation. A lot may depend on if you can afford to lose the deposit or not.
Paying the balance requested on holidays in the near future may be a bad idea as they are very unlikely to go ahead, and you will be faced with a potential larger loss although ABTA or ATOL cover might save you. I do know of one person who has just cancelled, but she is a high earner and can afford the loss.
 
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Nov 11, 2009
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I can understand the travel firms problem. Quite simply they are being asked to pay large sums of money when they have absolutely nothing coming in and still have expenses that need to be paid. Travel agents will have passed on most deposits to the firms you book with and will be in an even worse position as they are being asked to refund money they no longer have. I cab see a lot of them going out of business.
The law says they must refund you within 14 days if they cancel, but if they do not have it then how do they do it. At the same time people are due the money so you end up with a no win situation. If you do not get the money you can use the small court system, but even that is of no use if the company has nothing to pay you with. If there is ABTA or ATOL cover you should be safe but there is some doubts over the vouchers being offered and unless they run for a Year at least then they look dicey.
There is no right answer to this one I am afraid, and people have to make up their own mind on whatever information they can get and their financial situation. A lot may depend on if you can afford to lose the deposit or not.
Paying the balance requested on holidays in the near future may be a bad idea as they are very unlikely to go ahead, and you will be faced with a potential larger loss although ABTA or ATOL cover might save you. I do know of one person who has just cancelled, but she is a high earner and can afford the loss.

I agree with your views insofar as the monies paid will have no doubt passed down the chain. But to say you will be safe with ABTA isn’t exactly aligned with the advice ABTA are giving to their members. It’s a very difficult situation fir all concerned. On a local level we had a voucher at Xmas fir meals at a local restaurant which is now totally closed. It’s a really good place which we would miss if they went bust. So we’ve just binned the voucher as turning up when they do reopen and presenting the voucher just makes life even harder for the owners.
 
May 7, 2012
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We had a voucher for a meal which we had booked for but because of the lockdown we could not use and that has had to be binned. At the same time there was a voucher for a local to the restaurant distillery for a tasting. We had arranged to use that at the same time but rang them to see what they had to say. They said do not worry just rebook once we are open. That is service.
 
Mar 14, 2005
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I’ve spoken to the underwriters for Red Pennant and was told that cancellation by the ferry company due to virus was/is not covered. I argued that breakdown e.g mechanical failure of the bost was covered so by extension boat being unfit/ unsafe for service should be if it was a ferry company decision, but I was clearly getting nowhere.
I have to admit this is the first time I have read TandC in great detail and found it a bit uncomfortable. I know I should have done previously but guess I am far from being alone - you want the insurance, you tick the box.
 
Mar 14, 2005
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I suspect we're all prone to assuming that the T&C's must be alright especially for established products and services, and often we don't check them, but I think for the last 10 years at least at each renewal time I get an insert title changes to your policy, sadly I do read them, and mostly its things like changing the name of the company or of clarifying a definition, but some times they sneak a major one in like o_O "No claims allowed if your wearing white underpants";)! Seriously it does pay to read the documents.
 
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Mar 14, 2005
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I take the point about readingT&Cs but basically if you want that particular insurance for other reasons ( e.g. reputation of serrvice after mishap from Red Pennant) then you just have to accept the t&Cs Since the last posting I have read through all the documentation I received from CAMC with the policy and - perhas because I can;t see it too well - failed to find anything about pandemics, force majure etc.
I now plan to ask CAMC as issuers of the policy to indicate exactly which clause is being quoted by the underwriters, rather than trying to deal with the underwriters directly - I think my contract is with CAMC ?
 
Jul 18, 2017
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Hello Niall,

I don't think anyone can honestly deny the impact Covid-19 has wreaked on the world. It is truly a world wide event, and it seems very unlikely that its spread and impact could have been prevented.

Whilst there are some conspiracy theories that suggest the Covid-19 outbreak was a man made virus that escaped or was deliberately deployed, there is as yet no hard evidence to support such contentions.

No single person, organisation** or country is likely to be identified as being guilty of creating or failing to control the virus, which points to the likelihood of it being classed as an "Act of God."

** Despite President Trump blaming the UN's WHO

The Act of God or Force Majeure, clauses are difficult becasue there is no definitive list of such events, There will always be room for discussion about the definition, and of course its likely the insurance companies definitions will be biased towards reducing payouts, and policy holders about increasing payouts.

I suspect in due course we will see several legal challenges to insurers if they invoke AoG or FM clauses.

Good post, but not sure why you brought politics into it and even more surprised that the moderators have allowed it to stay even though the statement is factually correct?
 
May 7, 2012
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Ray, You are right to address your queries to the club although your actual contract for the health part of your insurance will be with the insurer. The club act as brokers in selling other companies insurance, and are technically acting for you and not the insurer. As brokers, their job is to find you the right policy for your needs rather, than act as agents for the insurer.
 
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